Foreign direct investment – a key driver of Moroccan development: What can be done to maximize its potential?
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Author(s)Samir MakhroutLink to ORCID Index: https://orcid.org/0009-0003-1705-9420
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Amina Ait HbibiLink to ORCID Index: https://orcid.org/0009-0004-7302-0579
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DOIhttp://dx.doi.org/10.21511/imfi.22(2).2025.33
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Article InfoVolume 22 2025, Issue #2, pp. 422-434
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3 Downloads
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Creative Commons Attribution 4.0 International License
This study examines the determinants influencing the attractiveness of foreign direct investment (FDI) in Morocco during the period 2000–2023. The data utilized in this study are sourced from the World Bank and the International Monetary Fund, encompassing economic, institutional, and infrastructural dimensions. The model includes variables representing economic growth, economic openness, inflation, infrastructure quality, political and macroeconomic stability, institutional quality, and fiscal policy. A Ridge regression was adopted to address multicollinearity issues detected in the data. Econometric diagnostics, including stationarity tests, residual normality tests, autocorrelation tests, and heteroskedasticity tests, confirm the robustness of the model.The results show that economic openness has a positive and significant effect on FDI inflows, highlighting the importance of trade and international integration. Political and macroeconomic stability also exerts a positive and significant impact, confirming that foreign investors value a stable environment. Conversely, economic growth exhibits a negative and non-significant effect, suggesting that Morocco’s growth has not been sufficient to create favorable conditions for FDI attractiveness. Infrastructure quality and institutional quality show significant negative impacts, which may reflect perceived shortcomings in these areas despite ongoing efforts. Inflation has no statistically significant effect on FDI, while fiscal policy has a significant negative impact, indicating that tax policies have a dissuasive effect on international investors.
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JEL Classification (Paper profile tab)F21, C33, E22
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References40
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Tables7
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Figures4
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- Figure 1. Confidence ellipses/Ridge regression
- Figure 2. Normality test for Ridge regression residuals
- Figure 3. CUSUM and CUSMSQ tests for Ridge regression
- Figure 4. Hat matrix for Ridge regression
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- Table 1. Stationarization of time series
- Table 2. Variance Inflation Factors / OLS
- Table 3. Ramsey RESET test of the ridge regression
- Table 4. Variance inflation factors for Ridge regression
- Table 5. Test of autocorrelation and partial correlation of residuals for the Ridge regression
- Table 6. Ridge regression heteroskedasticity diagnosis (Test: Harvey)
- Table 7. Ridge regression results
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Impact on poverty and income inequality in Malaysia’s economic growth
Rabiul Islam 
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Ahmad Bashawir Abdul Ghani ,
Irwanshah Zainal Abidin ,
Jeya Malar Rayaiappan
doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 55-62 Views: 12615 Downloads: 5992 TO CITE АНОТАЦІЯPoverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.
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Impact of inflation on economic growth: evidence from Nigeria
Anthony Olugbenga Adaramola ,
Oluwabunmi Dada
doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
Investment Management and Financial Innovations Volume 17, 2020 Issue #2 pp. 1-13 Views: 10305 Downloads: 6009 TO CITE АНОТАЦІЯIn an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.
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Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe
Serhiy Kozmenko ,
Maxim Korneyev
doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
Accounting and Financial Control Volume 1, 2017 Issue #1 pp. 48-58 Views: 8398 Downloads: 1497 TO CITEThe article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.
